Auction values drop for fourth consecutive month
11 August 2010
Manheim's Mike Pilkington expects values for used company cars to return to normal by the new year
July's fleet values at auction saw the sector drop for the fourth month in a row with a 3.6% fall, despite overall auctions values rising slightly on the previous month, according to the latest figures from auction firm Manheim.
Last month's auction average for fleet cars was £5925, and the four months of declining values since March total a 12.2% plunge, or £824 less than the March figure of £6749.
The year-on-year figures for fleet car disposals don't make any better reading, according to the auction company, with current values running at 9.3%, or £606, down on the end of July 2009. By comparison, year-on-year dealer part-exchange cars are up 2.9% (£61) to an average £2153 and manufacturer disposals are up 2.7% (£347) to £13,312.
"Considering that the difficult trading conditions experienced in June continued throughout July, the fall in fleet values wasn't really a surprise even if the slight rise in overall values was unexpected," said Mike Pilkington, managing director of, Manheim Remarketing. "The levels of economic confidence and consumer demand continue to cause concern as we enter what is traditionally one of the quietest periods of the year in the auction halls. Unless consumer demand picks up or there is a reduction in vehicle supply then the pressure on prices will remain."
Meanwhile, Manheim claims to have sold £130m worth of cars, vans, trucks, motorbikes and plant equipment online so far this year, including a £165,000 Lamborghini Murcielago.